Jakarta, Klinik Farma – Following the release of U.S. (US) inflation data in July 2023, which recorded an increase in inflation of 3.2% (y/y). How will this spike in US inflation affect the Indonesian economy?
According to UI economist Willem Macalive, with rising inflation in the US, the Fed could take up to 6% aggressive positions. If this happens, Indonesia will have to raise interest rates, because otherwise there is a risk of capital flight.
Watch Maria Katarina’s full conversation with UI Economist Willem Makalive and on the Klinik Farma Closing Program, Friday (11/08/2023).